Practice question
A charitable institution owns a building. It directly uses one clearly identified floor for its charitable activities and leases another identified floor to an independent private commercial enterprise. No separate exemption applies. It asks that the entire building be exempt solely because it owns the title. What analysis follows Lung Center?
- Determine qualifying and nonqualifying portions; ownership alone does not exempt the commercial leased floor.
- Exempt every floor because the title names a charity.
- Tax every floor solely because any rent is received.
- Ignore actual use and apply the owner's preferred label.
- Exempt the commercial floor only and tax the charitable floor.
Legal references
- RA 7160, Section 234; https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html
- Lung Center of the Philippines v. Quezon City, G.R. 144104, June 29, 2004, main decision; https://lawphil.net/judjuris/juri2004/jun2004/gr_144104_2004.html
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